International Meetings and Conferences Research Association IMCRA Publications

Abstract:
The socialist-oriented market economy in Vietnam is a particular form of the market economy
with the most basic characteristic being the existence of many forms of ownership, many
economic sectors, and a wide variety of businesses type of enterprise in the context of the
increasingly developed social division of labour. In the movement and development of the
socialist-oriented market economy in Vietnam, the development of the digital economy is
inevitable and plays an increasingly important role. Faced with the severe impacts of the
COVID-19 pandemic, the digital economy is currently and will be the focus of development for
many countries, especially in the post-COVID-19 period. Vietnam is in the process of
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developing and perfecting a full and modern market economy in the direction of socialism and
international integration, in order to strongly liberate and continuously develop the productive
power of the economy with many forms of ownership as current, Vietnam's market economy
needs good policies to create a turning point and breakthrough in the economy based on the
development of the digital economy. From approaching the philosophical, social philosophy,
through the research and analysis of documents of previous researchers, the guidelines, policies
and laws of the Communist Party of Vietnam, the Government of Vietnam, this article focuses
on researching the basic issues related to Vietnam's market economy and digital economy in the
post-COVID-19 context.
Keywords: market economy, digital economy, Vietnam, COVID-19

Introduction
Vietnam is in the process of developing and perfecting a full and modern market economy with
socialist orientation and international integration. Both practice and theory in recent years have
proved that the policy and direction on developing a socialist-oriented market economy is a
creation of the Communist Party of Vietnam, is the application of Marxism-Leninism to the
specific conditions and circumstances of Vietnam. With the development of science and
technology, the impact of the Industrial Revolution 4.0, the process of globalization and
international integration, the socialist-oriented market economy in Vietnam is facing many
opportunities, at the same time, it also faces many challenges, clearly recognizing the
characteristics and problems of the socialist-oriented market economy and the digital economy in
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Vietnam in the post-COVID-19 context is one of the urgent issues, has profound theoretical and
practical significance for Vietnam today.
Theoretical basis
Based on the theoretical basis of Marxism-Leninism, guidelines, guidelines and policies of the
Communist Party of Vietnam and the State of Vietnam on building and developing a socialist-
oriented market economy and digital economy in the current period of innovation and
integration.
Practical basis
The process of leadership, direction and implementation of the Communist Party of Vietnam and
the Government of Vietnam and localities in the construction and development of the socialist-
oriented market economy and the digital economy of Vietnam.
Research methods
The article uses dialectical and historical materialism methods in research and specific methods
include analysis, synthesis, logic and history.
Research techniques
The article uses document analysis techniques, research and document analysis of previous
researchers, guidelines, policies and laws of the Communist Party of Vietnam and the
Government of Vietnam on the construction and development of a socialist-oriented market
economy, on the digital economy in the current period of innovation and integration in Vietnam.
Research questions 130
Q 1: What is the process of awareness of the socialist-oriented market economy of the
Communist Party of Vietnam over the congresses?
Q 2: What is the socialist-oriented market economy associated with the digital economy in
Vietnam?
Q 3: What are the problems and challenges facing the digital transformation process in Vietnam?
Q 4: What are the limitations in developing a socialist-oriented market economy associated with
the digital economy in Vietnam today?
Q 5: What are the solutions to develop the socialist-oriented market economy associated with the
digital economy in Vietnam today?
Research purposes
The purpose of the article is to analyze and clarify the basic content related to Vietnam's market
economy and digital economy in the post-COVID-19 context.
Contents
Overview of the process of awareness of the socialist-oriented market economy of the
Communist Party of Vietnam through the congresses
Over 35 years of renovation, the awareness of the socialist-oriented market economy in Vietnam
is increasingly clear. The development of the market economy has contributed to affirming: "The
path to socialism in our country is consistent with the reality of Vietnam and the development
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trend of history. Achievements, experiences and lessons learned from practice create an
important premise and foundation for our country to continue to innovate and develop strongly in
the coming time”[2,16-17].
The 6th Congress of the Party (1986) - The Congress set out the comprehensive reform of the
country. Congress set out a policy to develop a multi-sector economy, on the basis of
"consolidating the socialist economy" and "using all the capabilities of other economic
sectors"[1,44], asserting that the multi-sector economic structure is a characteristic of the
transition period to socialism. The Congress proposed the policy of renovating the economic
management mechanism, abolishing the centralized planning mechanism of bureaucracy and
subsidies, building a new economic management mechanism with "planning as the centre",
"planning is the number one feature of the new economic management mechanism”; at the same
time, "correct use of commodity-money relations is the second characteristic of the new
management mechanism", "requires production to be linked to the market, all economic
activities must compare costs with effective” [1,65].
The 7th Congress of the Party (1991) had formed a view on the development of a multi-sector
commodity economy in the direction of socialism. The Congress determined "Continuing to
build a multi-sector commodity economy and renewing the economic management mechanism",
affirming "to promote the strengths of all economic sectors, compete and cooperate at the same
time. complement each other in the unified national economy” [1,273-274]
The 8th Congress of the Party (1996) continued to affirm the policy of "developing a multi-
sector commodity economy, operating according to the market mechanism with state
management in the direction of socialism" [1,468] and asserted that "commodity production is
not opposed to socialism but is a development achievement of human civilization, objectively
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existing and necessary for the construction of socialism" [1,481]. The congress advocated
reforming the state economy and the cooperative economy, implementing "equitization of state-
owned enterprises to mobilize more capital, creating more motivation to promote enterprises to
do effective business", "developing economic development cooperation with many diverse
forms, from low to high..., organizing more facilities to contribute shares and direct labour
participation of cooperative members, distribute according to labour results and shares. " [1,479].
At the 9th Congress of the Party, the term "development of a socialist-oriented market economy"
was officially used in the Party's Document. The 10th Party Congress (2006) affirmed 5
economic sectors: state economy, collective economy, private economy (individuals,
smallholders, private ownership), state capitalist economy and foreign-invested economy
developed together in our country's economy.
The 11th Congress of the Party had included in the program of building the country in the
transitional period to socialism (Added and developed in 2011) the view on building a socialist-
oriented market economy: Developing a socialist-oriented market economy with many forms of
ownership, different economic sectors, forms of business organization and distribution" [3,74],
"The state economy plays a leading role. The collective economy is constantly being
consolidated and developed. The state economy together with the collective economy has
increasingly become the solid foundation of the national economy” [3.73-74], "Market factors
are created synchronously, types of markets are gradually built and developed, both following
the rules of the market economy and ensuring the socialist orientation" [3,74].

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At the 12th Party Congress, the concept of a socialist-oriented market economy had been
clarified in terms of content, objectives and implementation method. Following that, the 5th
Plenum of the Central Committee (term XII) issued Resolution No.11-NQ/TW dated June 3,
2017, on perfecting the institution of a socialist-oriented market economy, which indicated
"Building and perfecting the socialist-oriented market economy institution is a strategic task, an
important breakthrough, creating motivation for rapid and sustainable development" and
Resolution No. NQ/TW dated June 3, 2017, on developing the private economy to become an
important motivation of the socialist-oriented market economy, which affirmed that the private
economy is the driving force for economic development.
On the basis of practical summaries, theoretical research on economic development and the
country's renovation process, the 13th Congress of the Communist Party of Vietnam pointed out
the basic contents of the socialist-oriented market economy as follows: "It is a modern market
economy with international integration, fully and synchronously operating according to the laws
of the market economy, managed by the socialist rule of law, by the Party. Communist
Vietnamese leadership; ensuring the socialist orientation for the goal of "rich people, strong
country, democracy, justice and civilization" suitable to each development stage of the country.
Vietnam's socialist-oriented market economy has many forms of ownership and economic
sectors, in which: the state economy plays a leading role; collective economy and cooperative
economy are constantly consolidated and developed; the private sector is important motivation;
Foreign-invested economies are encouraged to develop in accordance with socio-economic
development strategies, master plans and plans” [4,128-129]. The document of the 13th Party
Congress had supplemented and developed a number of new views on the socialist-oriented
market economy, reflected in emphasizing the need to continue to unify and raise awareness of 132
the socialist-oriented market economy; clearly state the close relationship between the State, the
market and society; building an independent and self-reliant economy; improve the efficiency of
international economic integration.
Thus, both practice and theory have proved that the perception of the socialist-oriented market
economy of the Communist Party of Vietnam has gradually been concreted. Many mechanisms,
policies and institutions of the socialist-oriented market economy in Vietnam are gradually
improving, modernizing, and gradually becoming more suitable for regional and international
markets.
Socialist-oriented market economy associated with the digital economy in Vietnam
Over 35 years of renovation, awareness of the socialist-oriented market economy is more and
more complete in Vietnam. The legal system, mechanisms and policies continue to be perfected
in accordance with the requirements of building a modern market economy and international
integration. Market factors and types of markets gradually develop synchronously, associated
with regional and world markets. The reforms in the direction of economic freedom and the
development of a market economy in Vietnam have achieved many results, reflected in the
fundamental establishment of property rights and other rights in business and continued
improvement. benevolent; The level of government involvement in the economy in Vietnam is
moderate; start-up activities in Vietnam are becoming easier and cheaper and the cost of business
registration is also reduced; The overall investment framework has been modernized and made
easier for foreign investment, the financial sector has continued to grow, and lending directed by
state-owned commercial banks has narrowed in recent years; The Government of Vietnam has
more effective spending plans with specific measures and responsibilities of agencies in
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government spending; The State Bank of Vietnam has made a significant improvement in fiscal
policy, contributing to raising the economic freedom index, building a market economy
according to international practices; The Enterprise Law No. 59/2020/QH14 in 2020 also brings
about an improvement in building a market economy in Vietnam. In which, the State recognizes
the long-term existence and development of various types of enterprises; recognize and protect
property ownership, investment capital, income, and other lawful rights and interests of
enterprises and business owners; Lawful assets and investment capital of enterprises and
business owners shall not be nationalized or confiscated by administrative measures. Enterprises
have the right to conduct business in industries and trades that are not prohibited by law and their
business autonomy rights are also recognized.
The results in Vietnam's economic development cannot fail to mention the impacts from the
industrial revolution 4.0 in particular and the digital economy. In particular, Vietnam's economy
is expected to grow more slowly due to the re-emergence of the COVID-19 epidemic, which has
disrupted labour sources, reduced industrial output and disrupted agricultural value chains. The
COVID-19 pandemic poses unprecedented challenges and great difficulties to the entire
economy, has been having a strong and profound impact on all industries, regions and other
subjects. Although the Government of Vietnam has had timely policies in the first support
package to support and rescue some economic sectors and those most affected, the pandemic has
become complicated again in the world. Many localities in the country have been and will be a
more comprehensive and heavy impact on the economy. This situation requires the Government
to consider a new support package in 2021 and beyond, with a large scale and wider coverage to
continue to remove difficulties, maintain economic development and prepare for the post-
pandemic recovery period.
Page 133 Aware of the position, role and importance of the digital economy for the country's development
in the context of integration, the Party and the State of Vietnam have always paid great attention
to and have many policies and solutions that have related to the transition to the digital economy.
The most recent can be mentioned Resolution No. 36-NQ/TW, dated July 1, 2014, of the 11th
Politburo, on promoting information technology development to meet the requirements of
sustainable development and integration. international. Institutionalizing the Party's policy, the
Government has issued many resolutions on this issue. Most recently, the Government's
Resolution No. 41/NQ-CP, dated May 26, 2016, on tax incentives to promote the development
and application of information technology and the Digital Directive 16/CT-TTg, dated 4/5/2017,
of the Prime Minister, on strengthening the capacity to access the Industrial Revolution 4.0. In
August 2018, the National Committee on E-Government was established with the Prime Minister
directly serving as the Chairman of the Committee. The Strategy on Industry 4.0 and the Action
Program on Digital Transformation is being researched, drafted and will be integrated into the
Socio-Economic Development Strategy for the 2021 - 2030 period. In addition, many related
regulations The digital economy is also reflected in related laws such as the Law on Electronic
Transactions (2005), the Law on Information Technology (2006), the Law on Radio Frequency
(2009), and the Law on Cybersecurity (2018).
A fact that we can feel quite clearly in recent times is that the process of digital transformation
has been - will make our future change drastically. With the digital economy, too, the core is the
organizational models and operating methods of the economy based on the application of digital
technology. The rise of the digital technology sector has paved the way for innovation and global
growth. The adoption of technological advances over the years has impacted businesses as well

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as every aspect of life. Digital technology has driven many businesses to improve their
development models, create new industries, and blur geographical borders.
The recent COVID-19 pandemic and social distancing have helped businesses realize the
increasingly important role of digital transformation. However, it is also the COVID-19
pandemic that has shown that the digital transformation process in Vietnam is facing a number of
bottlenecks that need to be focused on removing, specific manifestations:
Firstly, digital infrastructure and services, including hard infrastructure and telecommunications
networks as the foundation to create soft infrastructure are digital services that help optimize
economic activities that have not yet met the maximum demand as originally expected.
Secondly, digital resources include a data ecosystem (national database on agriculture, finance,
population, land management) and useful open knowledge for timely plan prediction and making
decisions to bring about high economic efficiency has not been fully implemented compared to
the requirements of reality.
Thirdly, digital transformation policy, including services, policy on transformation from e-
Government to digital government, policy on training high-quality digital human resources,
policy on digital business investment, policy on digital transformation. In fact, information
security, digital sovereignty and intellectual property still have many limitations and
shortcomings and have not kept up with the trend of development.
Fourthly, the protection of privacy in the Internet environment, data leakage, trading and
exploitation of personal and business data is also a matter of concern in the development of the
digital economy in Vietnam today.
134
Fifthly, the state management, especially tax collection, ensures the rights of workers for the
current cross-border trade and service provision.
Sixthly, the reality also reflects that the digital transformation process in Vietnam is still slow,
lack of digital skills and human resources, a lack of digital thinking or the challenges of digital
culture in businesses, especially working with small and medium enterprises in Vietnam.
Seventhly, ensuring safety and security in the digital environment is also an important issue if the
digital economy is to become one of the main pillars of the economy.
Eighthly, the rapid transformation of business models in the digital economy has led to a number
of legal regulations not keeping up. Due to the rapid development of science technology, digital
economy, new business methods and innovative ideas, state management agencies are still
confused in managing digital economic activities.
Inadequacies and limitations in the development of a socialist-oriented market economy
associated with the digital economy in Vietnam.
Inadequacies and limitations in the development of a socialist-oriented market economy
associated with the digital economy in Vietnam are specifically expressed in the following basic
points:
Firstly, the improvement of institutions, innovation of growth model, economic restructuring,
industrialization and modernization is still slow, has not made a fundamental change in the
growth model; productivity, quality, efficiency and competitiveness of the economy are not high.
In the context of digital technology affecting the development of the economy in general, it is

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very important to innovate the growth model taking into account new factors such as technology
trends. Institutions and policies for the development of the socialist-oriented market economy in
Vietnam in association with the digital economy are still inadequate. In operating and managing
the economy, the legal framework has not kept pace with the rapid development of business
models associated with digital technology, causing difficulties for the business community. and
loss of tax revenue to the state budget. The level of active participation in the development of
Vietnam's digital economy is still limited and somewhat spontaneous.
Secondly, the capacity and technology level of the economy is still low. Science and technology,
innovation is not really a driving force for socio-economic development; The new national
innovation system has just been formed, has not been synchronized and effective. The industry is
still mainly processing and assembling, the added value is not high; Supporting industries
develop slowly, localization rates are low, and effective participation in global value chains is
still limited. This is one of the issues that need to be paid great attention to when currently,
according to experts, the value contributing to economic growth is mainly foreign-invested
enterprises, while the Most domestic enterprises only do outsourcing, but create little added
value. Although the level of technology application in management, operation, production and
business activities of Vietnamese enterprises has improved, it still does not meet the
requirements set forth. In addition, there are a number of other limitations and challenges, such
as the socialist-oriented market economy institution has many problems and shortcomings that
have not been resolved; the institutional capacity building is still limited; low quality of laws and
policies; structure and quality of human resources have not met the requirements; The
connection and technology transfer between FDI enterprises and domestic enterprises are still
limited... These issues also have an impact on the development of a socialist-oriented market
Page 135 economy associated with the digital economy in Vietnam today.
Solutions towards the development of a socialist-oriented market economy associated with
the digital economy in Vietnam
Firstly, researching to have regulations and policies to encourage and support the private sector
to participate in development cooperation, especially to participate in projects related to
Vietnam's existing strengths such as agriculture and forestry, agro-forestry product processing,
tourism.
Secondly, the Government of Vietnam needs to continue promoting institutional reform,
especially perfecting the legal framework and policies on the establishment, organization and
operation of business organizations, especially enterprises through amending and supplementing
legal documents such as Law on Enterprises (amended), Law on Investment (amended), Law on
Tax Administration, Law on Labor Code (amended), Law on Land (amended)... and guiding
documents to ensure implementation uniformity, specificity and transparency; highly feasible,
easy to implement and suitable to conditions and characteristics as well as promoting the existing
strengths of Vietnam in the context of integration.
Thirdly, strengthening the initiative and active regional and international linkages.
Fourthly, conducting a review to minimize administrative procedures, business investment
conditions; encouraging enterprises to apply science and technology, exploiting opportunities of
the Industrial Revolution 4.0. Approaching new technology solutions through policies to
improve national technological capacity in key fields of the digital revolution, applying SMAC
technology based on digital and sensor technology platforms (S), mobile applications and
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machine-to-machine communication (M), big data analytics (A) and cloud infrastructure (C),
IoT, biology, nano, 3D printing.
Fifthly, drastically implement the fundamental and comprehensive renovation of education to
create creative human resources for society, ready for the digital revolution - the industrial
revolution 4.0.
Sixthly, provinces in the Central Highlands need to create conditions for the private sector to
access resources for development, especially land, capital, labour, access to science and
technology, and promote creative innovation and application of science and technology in
production and business.
Conclusion
Recently, the EU-Vietnam Free Trade Agreement (EVFTA) and Investment Protection
Agreement (IPA) are major events of Vietnam and the EU, opening up many export
opportunities for Vietnamese enterprises to the EU market and vice versa, European enterprises
will also increase investment strongly in Vietnam market thanks to commitments on incentives
from Vietnam. In that context, the process of developing and perfecting a full and modern
market economy in the direction of socialism and international integration will be further tested
and confirmed in practice, helping Vietnam to overcome challenges, adapting to international
standards, creating important and necessary momentum for the overall development of the
country and society. In Vietnam, the COVID-19 pandemic and digital technology will accelerate
the process. Digital economy development goes faster, notably e-commerce activities, cashless
economic transactions are increasingly developing in Vietnam, creating opportunities for
businesses to promptly grasp and apply using the tools of the digital economy. Vietnam's 136
socialist-oriented market economy has many forms of ownership and economic sectors, in
which: the state economy plays a leading role; the collective economy and the cooperative
economy are constantly consolidated and developed; the private sector is an important driver;
Foreign-invested economy is increasingly encouraged to develop. At the same time, raise
awareness about the development of the digital economy in the socialist-oriented market
economy in Vietnam, thereby making the best preparation for this development trend in the
present and in the future.
This study was conducted to analyze the basic issues related to the market economy and the
digital economy of Vietnam in the post-COVID-19 context. The results show that the perception
of the socialist-oriented market economy of the Communist Party of Vietnam has gradually been
concreted. Many mechanisms, policies and institutions of the socialist-oriented market economy
in Vietnam are gradually improved, modernized, and becoming more suitable for regional and
international markets. The socialist-oriented market economy in Vietnam has a close relationship
with the digital economy. Inadequacies and limitations in the development of a socialist-oriented
market economy associated with the digital economy in Vietnam are reflected in the
improvement of institutions, renewal of growth models, economic restructuring,
industrialization, and modernization. modernization is still slow, has not made a fundamental
change in the growth model; productivity, quality, efficiency and competitiveness of the
economy are not high. The capacity and technology level of the economy is still low; socialist-
oriented market economy institutions still have many problems and inadequacies that have not
been resolved; the institutional capacity building is still limited; low quality of laws and policies;
structure and quality of human resources have not met the requirements. From the research

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 International Meetings and Conferences Research Association IMCRA Publications

results, the article proposes some solutions towards the development of a socialist-oriented
market economy associated with the digital economy in Vietnam. The study also affirms that,
with the strong development of the trend of digital technology and the digital economy, Vietnam
needs to raise awareness about the development of a socialist-oriented market economy in
association with the digital economy; continue to improve institutions and legal frameworks to
facilitate the digital economy with the strict and effective management of the State.

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